MONTANA COMMUNITY DEVELOPMENT CORPORATION HOMENOW NO DOWN PAYMENT CONVENTIONAL PROGRAM SUMMARY

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1 MONTANA COMMUNITY DEVELOPMENT CORPORATION HOMENOW NO DOWN PAYMENT CONVENTIONAL PROGRAM SUMMARY PROGRAM SPONSOR DESCRIPTION OF PROGRAM PROGRAM AREA ELIGIBLE LENDERS MASTER SERVICER & COMPLIANCE AGENT Montana Community Development Corporation - The HomeNow Conventional Program (the Program ) provides first mortgage financing and down payment/closing cost assistance to eligible borrowers. The down payment/closing cost assistance is in the form of a gift to the borrower. Montana CDC established the Program to fulfill its mission to provide Montana residential borrowers (whose income does not exceed the Income Limits set forth below) down payment/closing cost assistance to enable such borrower to access financing for the purchase or refinance of a home. This Program Summary is a complement to, and not a substitute for, the more detailed Program Guidelines. Fannie Mae Mortgage guidelines apply except as modified by this program summary for the purpose of this program only. Single family residences located within the of Montana Lenders must be approved by U.S. Bank (acting as Master Servicer) to participate in the HomeNow Program. Interested lenders should contact U.S. Bank Help desk at (option 2) or You may also contact Melanie Calahan of Montana CDC at , or her at Master Servicer ***Third Party Origination is not allowed*** Compliance Agent U.S. Bank Home Mortgage, HFA Division Rockside Road Bedford, OH (800) (option 2) Hilltop Securities Inc. Attn: Sharon Gonzalez or Lori Wood 1201 Elm Street, Suite 3500 Dallas, TX (214) (214) Montana CDC HomeNow Down Payment Gift Program, Fannie Mae, 3/21/2017 Page 1 of 13

2 FIRST MORTGAGE PRODUCTS Purchase money and rate and term refinances of primary residences only. No cash out refinances allowed. Product Fannie Mae for LTV s 80.01% to 97.00% CLTV not to exceed 105% Amortization Terms 30 years The CLTV Includes the combination of other repayable gifts, grants, community/affordable seconds, IDA s, and employer assisted benefits. Please refer to Fannie Mae for the community/affordable seconds requirements. FIRST LOAN INTEREST RATES Hilltop Securities will post First Mortgage Loan interest rates at 8:00 a.m. M.S.T. daily. Current rates can be found at the following website The reservation window will be available from 8:00 AM to 5:00 PM M.S.T., Monday through Friday except for Holidays. Rates can be subject to intra-day pricing changes. All loans must be delivered and purchased by U.S. Bank within 60 days of rate lock. A one-time extension may be purchased (netted at loan purchase by U.S. Bank) at the following rates: Days Extended Fees Netted at Loan Purchase 7 Days % 15 Days % 22 Days % 30 Days 0.375% DOWN PAYMENT ASSISTANCE BORROWER ELIGIBILITY The down payment assistance is in the form of a gift and is based on the total first mortgage loan amount. 3.0% Assistance (borrower nets 3.0%) 4.0% Assistance (borrower nets 4.0%) 5.0% Assistance (borrower nets 5.0%) The funds may be used to fund up to 100% of the Borrower s cash requirement to close, including the down payment, closing costs, pre-paid items and other related Mortgage Loan fees and expenses. No portion of the gift funds can be paid to the Borrower unless the Borrower is being reimbursed for an overage of his/her earnest money deposit to the extent the minimum Borrower contribution has been satisfied. Principal reduction is allowed. Under the rate/term refinance option, any funds above the amount needed to pay the Borrower s loan related costs must be used to reduce the principal amount of the First Mortgage loan. The lender must receive a compliance approval from the Compliance Agent, Hilltop Securities Inc. in order to be eligible for purchase by the Servicer. Montana CDC will table fund the Gift amount at the first mortgage loan closing. Borrower does NOT have to be a First-Time Homebuyer Determined by Fannie Mae product guidelines and any U.S. Bank overlays Non-occupying co-signors and non-occupying co-borrowers are permitted. Borrowers may have ownership interest in other residential property at time of closing. Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 2 of 13

3 INCOME LIMITS AND FLEXIBILITIES The borrower s qualifying income must not exceed Program Income Limits where applicable. Limits are listed in Exhibit A attached hereto. Low-income census tracts have no income limit Income limits in all other census tracts are set at 100% AMI Boarder Income may be considered in underwriting a loan and included as qualifying income Rental income from an accessory unit may be considered for inclusion as qualifying income All stable sources of income for the Mortgagors should be considered, as allowed by Agency Guidelines and any U.S. Bank overlays. NOTE: A spouse that could credit qualify should not be intentionally left off of the loan to meet the income guidelines. Lenders will be responsible for ensuring that the income meets program guidelines. PROPERTY TYPES 1-Unit, including U.S. Bank approved condominiums (up to 97% LTV allowed eff. 3/20/2017), town homes and PUDs. If delegated by U.S. Bank to underwrite project approval, may not underwrite over 95% LTV. If LTV is over 95% or lender is not delegated to underwrite, must receive approval form from U.S. Bank Project Approval Department. 2-Unit (owner occupied) Co-ops are NOT permitted. Manufactured housing is NOT permitted. UNDERWRITING Fannie Mae must have a DU finding of approve/eligible and meet all other guidelines listed in this Program Summary. LTV 80.01% up to 97.00% All borrowers MUST have a minimum Credit Score of 680. Manual Underwriting: LTV=<95% a loan can be manually underwritten at the lender s discretion if there is an AUS finding of refer. Manual underwrite minimum credit score is 680 and maximum DTI is 36%. Borrower must have 2 months PITIA reserves after closing. Non-Traditional Credit: If no Borrower has a Credit Score, maximum LTV is 90% and maximum DTI is 36%. If at least one borrower has a credit score, maximum LTV is 95%, maximum DTI is 36%. Borrower must have at least 2 months PITIA reserves after closing, unless DU findings indicate a greater amount. See link to FNMA Eligibility Matrix below for detailed LTV, Credit Score and reserve requirements. DEBT RATIO Not to exceed 50% on AUS approved loans, exceptions above. LTV 80.01% to 97.00% SELLER CONTRIBUTIONS HOMEBUYER EDUCATION 3% Maximum for CLTV greater than 90% 6% Maximum for CLTV less than or equal to 90% May be used for closing costs and/or single or split MI premiums. One borrower on each purchase loan must fulfill the homeownership education requirement. The Framework homeownership education course is a simple option. completed prior to loan closing, or any other HUD approved course, provided the course has been started prior to the signing of a purchase contract. Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 3 of 13

4 APPRAISAL MORTGAGE INSURERS MI COVERAGE MI ACTIVATION PRICING AND FEES A full interior/exterior appraisal is required and must comply with First Mortgage program appraisal guidelines. The following MI Companies are approved: Arch, Essent, Genworth, MGIC, National and Radian. MI rates, pricing, and guidelines may differ among the participating Mortgage Insurers and are subject to change. Lenders should consult the current Housing Finance Agency MI guidelines at each MI company to determine the terms and conditions by which such loans will be insured. These Program Guidelines do not supersede, nor are they a substitute for, the guidelines in place with each Mortgage Insurer at the time the loan is underwritten. 25% for LTV ratios at 85.01% to 97.00% 12% for LTV ratios at 80.01% to 85.00% Payment Options All LTV s: Borrower Paid monthly with annual renewal Split Premium Single Premium Lender Paid MI may be used MI May be financed up to the maximum LTV for the transaction, including the financed MI Lender is responsible for activating any MI policy and remitting any MI payments due to the Mortgage Insurer prior to the sale of the loan to US Bank. The Lender is also responsible for transferring the MI policy to US Bank after the loan sale. In addition to the standard fees normally charged to the borrower (i.e. Appraisal Fee, Credit Report Fee, Flood Certification, Freight, Underwriting, Document Preparation, etc.) the following fees may also be included. Please list fees in either section A or section B of the LE/CD but do not make them payable to U.S. Bank. Type Amount Service Provider Loan Origination Fee Usual and customary Lender SRP 2.50% Lender Delivery Fee $ Paid at closing U.S. Bank Tax Service Fee (reservations and after) $21.50 Paid at closing U.S. Bank Compliance Fee $ Paid at closing Hilltop Securities Inc. Attn: Sharon Gonzalez 1201 Elm Street, Suite 3500 Dallas, TX MERS ASSIGNMENTS LOAN PURCHASE AND SERVICING Lender will be required to register and assign the First Mortgage Loans using MERS to U.S. Bank. U.S. Bank will purchase the First Mortgage Loan at a rate and price reflected on the Mortgage Commitment confirmation, less any fees, plus the applicable Servicing Release Premium. All loans will be sold to U.S. Bank and should be electronically submitted via DocVelocity for compliance review. No paper files will be accepted. (800) (option 2) Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 4 of 13

5 LOCKING A LOAN, APPROVAL PROCESS, FUNDING & CLOSING Lenders must fund the First Mortgage Loans at loan closing. All loans will be locked, approved, DPA funds requested, and post-closing documents uploaded through the HomeNow Lender Portal at Locking/Approval of DPA Upload/complete the following: Pre-Closing Checklist Loan Application Loan Estimate Purchase Contract Signed Underwriter 1008 or Transmittal Form Documentation ( DU Findings Funding of DPA Montana CDC will table fund the gift funds at closing. Montana CDC must review and approve the closing disclosure at least 1 (one) business day prior to the lender disclosing to the borrower. Upload/complete the following: Funding Checklist Funding Request Form Commitment Letter Notice of Down Payment Assistance Grant (Gift Letter) Final Closing Disclosure Post-Closing Documentation The first mortgage loan will not be purchased by U.S. Bank until the Post-closing documents have been uploaded, reviewed, and cleared by Hilltop Securities Inc. Upload/complete the following: Post-Closing Checklist Final executed Closing Disclosure Final executed 1003 Copy of executed Gift Letter Check to Hilltop Securities for $ (this should be paid from title at closing if not, please send the check directly to Hilltop Securities (address is on the first page of this Program Summary) In the event a loan is not purchased by U.S. Bank and loan reservation is expired or canceled, the Lender must reimburse Montana CDC for the down payment assistance funds provided at loan closing. In such cases, Montana CDC will notify the Lender and the Lender will have 15 days to remit the funds owed to Montana CDC. If you have additional questions, please contact Hilltop Securities Inc.: Sharon Gonzalez Lori Wood Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 5 of 13

6 Income Limits BEAVERHEAD No income limit BEAVERHEAD $60, BEAVERHEAD $60, BIG HORN $60, BIG HORN No income limit BIG HORN No income limit BIG HORN $60, BIG HORN No income limit BLAINE No income limit BLAINE $60, BLAINE No income limit BLAINE No income limit BROADWATER No income limit BROADWATER $60, CARBON $69, CARBON $69, CARBON $69, CARBON $69, CARBON No income limit CARTER $61, CASCADE $57, CASCADE $57, CASCADE $57, CASCADE No income limit CASCADE No income limit CASCADE No income limit CASCADE No income limit CASCADE $57, CASCADE $57, CASCADE $57, CASCADE No income limit CASCADE $57, CASCADE $57, CASCADE $57, CASCADE $57, CASCADE $57, CASCADE $57, CASCADE $57,200 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 6 of 13

7 CASCADE $57, CASCADE $57, CASCADE $57, CASCADE No income limit CHOUTEAU $60, CHOUTEAU No income limit CUSTER $60, CUSTER $60, CUSTER $60, CUSTER $60, CUSTER $60, CUSTER No income limit DANIELS $61, DAWSON $65, DAWSON $65, DAWSON $65, DEER LODGE $60, DEER LODGE $60, DEER LODGE No income limit FALLON $68, FERGUS $60, FERGUS $60, FLATHEAD No income limit FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD No income limit FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD No income limit FLATHEAD $60,400 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 7 of 13

8 FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, FLATHEAD $60, GALLATIN $74, GALLATIN $74, GALLATIN No income limit GALLATIN $74, GALLATIN $74, GALLATIN $74, GALLATIN $74, GALLATIN $74, GALLATIN $74, GALLATIN $74, GALLATIN No income limit GALLATIN No income limit GALLATIN $74, GALLATIN $74, GALLATIN No income limit GALLATIN $74, GALLATIN $74, GALLATIN No income limit GALLATIN $74, GALLATIN $74, GALLATIN $74, GALLATIN $74, GARFIELD $61, GLACIER No income limit GLACIER $60, GLACIER $60, GLACIER $60, GOLDEN VALLEY No income limit GRANITE $60, HILL $60, HILL $60, HILL No income limit HILL $60,300 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 8 of 13

9 HILL $60, HILL No income limit JEFFERSON $78, JEFFERSON $78, JEFFERSON No income limit JUDITH BASIN $60, LAKE $60, LAKE $60, LAKE No income limit LAKE $60, LAKE No income limit LAKE No income limit LAKE $60, LAKE No income limit LEWIS AND CLARK No income limit LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK No income limit LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LEWIS AND CLARK $67, LIBERTY $60, LINCOLN $60, LINCOLN No income limit LINCOLN $60, LINCOLN No income limit LINCOLN No income limit MCCONE $60, MADISON $63, MADISON $63,300 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 9 of 13

10 MADISON $63, MEAGHER No income limit MINERAL $60, MINERAL No income limit MISSOULA $61, MISSOULA No income limit MISSOULA $61, MISSOULA No income limit MISSOULA $61, MISSOULA $61, MISSOULA No income limit MISSOULA No income limit MISSOULA $61, MISSOULA $61, MISSOULA No income limit MISSOULA No income limit MISSOULA $61, MISSOULA $61, MISSOULA $61, MISSOULA $61, MISSOULA $61, MISSOULA $61, MISSOULA $61, MISSOULA $61, MUSSELSHELL $60, MUSSELSHELL $60, PARK $60, PARK $60, PARK No income limit PARK $60, PARK $60, PARK $60, PETROLEUM $60, PHILLIPS $60, PONDERA $60, PONDERA No income limit POWDER RIVER $60,300 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 10 of 13

11 POWELL $60, POWELL $60, PRAIRIE No income limit RAVALLI $60, RAVALLI $60, RAVALLI $60, RAVALLI No income limit RAVALLI $60, RAVALLI $60, RAVALLI No income limit RAVALLI No income limit RAVALLI $60, RAVALLI No income limit RICHLAND No income limit RICHLAND $74, RICHLAND $74, RICHLAND $74, ROOSEVELT $60, ROOSEVELT $60, ROOSEVELT No income limit ROSEBUD $61, ROSEBUD $61, ROSEBUD $61, ROSEBUD No income limit SANDERS No income limit SANDERS No income limit SANDERS No income limit SHERIDAN $70, SHERIDAN $70, SILVER BOW No income limit SILVER BOW No income limit SILVER BOW No income limit SILVER BOW $60, SILVER BOW $60, SILVER BOW $60, SILVER BOW $60, SILVER BOW $60,300 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 11 of 13

12 STILLWATER $71, STILLWATER $71, STILLWATER $71, SWEET GRASS $60, TETON $60, TETON $60, TETON $60, TOOLE $60, TOOLE $60, TOOLE $60, TREASURE No income limit VALLEY $60, VALLEY $60, VALLEY $60, WHEATLAND No income limit WIBAUX $69, YELLOWSTONE No income limit YELLOWSTONE No income limit YELLOWSTONE No income limit YELLOWSTONE $69, YELLOWSTONE No income limit YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE No income limit YELLOWSTONE No income limit YELLOWSTONE $69, YELLOWSTONE No income limit YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69,200 Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 12 of 13

13 YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE No income limit YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69, YELLOWSTONE $69,200 Instructions to Find : Click on the link below and enter the from the chart above, or enter the property address. or Click on the link below and enter the property address or Zip. Montana CDC HomeNow No Down Payment Program, Fannie Mae, 5/30/2017Page 13 of 13